so here i am right now traveling deep into the swiss alps two dollars off the ski resort get set to play host to the wall of economic forum's annual meeting top economists bankers politicians and even the on celebrity will head here this week to discuss global financial topics and perhaps even still a multi billion dollar deal behind trying to rome itself over forty years now the world economic forum has set the agenda for shaping the global economy and this year's theme he's a resilient dynamism which in the words of the founder of the forum of the future growth in this you content your mind's dynamism bold vision bold action european debt crisis sent to be dominating the move once again along with this spiraling us then of course china is very strong as well so while i'm scientific in the economy colossal doubles lisa flying above me right now in the private jets mr me just really doesn't present the difference between the haves. you know. getting mentions

the divide between the rich and the poor and that's actually one of the underlying themes of this year's forum in fact severe income inequality is the biggest risk facing the world that's according to the world economic forum's own study the world's one hundred richest people made so much money last year that it would have been enough to end extreme poverty who are times over according to office family that's an international philanthropy organization that actually wrote the report the top of billionaires accumulated two hundred forty billion dollars in two thousand and twelve and as you can see here the richest one hundred folks made an axis of six and a half million dollars per day each walt the poorest and there are about one and a half billion people in that category they earn just over one dollar to. and

we spoke with max lawson the head of advocacy at oxfam he claims he knows how to solve this dilemma warren buffett is getting ready. to be wearing it he's not. crazy just been a man who'd been to the world so much in the polls for longer than want to see china so is it also something we should in the richest people who've got lower and lower so we're really calling. around to the same trouble that we have you know if we don't you mean the richest people are going to mouthful. i think when we close the big money away. we go where the country wasn't. so that we can see that money new rule where you know. so katie what do you think of all of this well right now the global economy has got two issues to deal with dealing with high

unemployment and also spending cuts and combined this is often the catalyst for the disparity between the rich and the poor and as a consequence we get mass migration we also get social unrest as well and that's very much why it's not all about finances plenty of politics on the table too and two topics of discussion it will be the protests in syria and mali but actually katie on this year's theme it's actually called resilient dynamism doesn't really make any sense to me and i think one of the reasons why it's so convoluted as if on purpose is precisely because there actually no decisions being made here davos no decisions but agenda is set in his cold it's snowing the really isn't much else to do other than talk finance and politics and global warming all of these big big topics you know you've got the rise of the president mario draghi coming back christine legarde all heading here to talk about stimulating the

economy the professor of this whole the sound of it and claws schwab he has said that it's all about entrepreneurial ship in business. most of form or ways i heard some from those who are free so. it is on the corner ship which drives economic and social progress economy development and social progress so i don't see increasing have to change drastically so model for economy coast we have to import food and we have to put back its ascent of the printer and that's all the latest from the business team for now of course will be bringing you all the latest from the dallas economic forum all week long so you make sure you tune in and of course you can always find all the way to news and interviews at our site r.t. dot com slash business.

georgian president mikheil saakashvili military police have been accused by prosecutors of using a very unusual weapon to control members of the government a weapon so unusual that history's great villains wouldn't even touch it that weapon was almost sexuality the georgian prosecutor's office claims a network of gay spies was set up to seduce certain politicians in order to surveil them and blackmail them the gay spies would tempt men in the government into going back to their apartments which were filled with hidden cameras and microphones to record information and create a not safe for work video to be used to put pressure on these officials this is

truly one of the most unique and kind of gross weapons of political intrigue i've ever heard of i mean how many men in georgia politics could possibly fall into the spy trap you know if he actually did implement this scheme and it actually worked than machiavelli and von bismarck could have a thing or two to learn from president saakashvili but that's just my opinion. choose your language. because you know if you. choose to. choose to get to. choose the stories but if you. choose access to. wealthy british style.

markets why not. find out what's really happening to the global economy with mike's cancer for a no holds barred look at the global financial headlines in two kinds a report. that. goal is. to cut. the speed.

with my. mum and good. luck. and a. little. fifth . her third.

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you're watching r.t. and coming up next the trouble was plaguing the european economy on the continent single currency now the man known as the father of the euro talks about his creation eleven years after his callings and bank notes replaced local money in european markets. about mandela nobel prize winner and as many call you they've got father of the year oh it's great to have you with us today nice to be here you know at the time of its inception euro was hailed to be the catalyst for growth unemployment in here up as of today at the unemployment rate in the eurozone is twelve percent and also the economic problems are looking pretty bad this year in terms of growth what went wrong wrong wrong is the current problem.

very high debt and combined with high deficits and i do there's a large part in the great shock of the recession the. global slowdown starting in two very sweet and they really became a big target now. it isn't the creation of the euro. cars the problem so much because before the euro came into being countries where they clearly had a hundred three percent. g.d.p. ratios and greece greece had two hundred ten percent belgium had. one time in one thousand nine hundred forty five percent so they let there's a lack of fiscal discipline all in a movement to the left in europe big spending and on. social projects that. couldn't keep going it's no longer now europe also has

a static population in some cases to declining population and so you have more. people more pensions bills to pay and fewer people to work to pay them you know that it's a pretty big problem when the shot came but when you talk about dadt i mean there are i think two points to make because first of all has always been plagued with debt. reg its budget deficit in order to qualify so maybe it's not the death but what was it maybe that hero was too good on maybe you topping for europe then they probably had some. what it did with the creation of the year when countries came in when italy came in they had before the euro. industry to their own top percent fourteen percent that had a devaluation premium in and when they joined the euro suddenly they were all the

target. you know four percent four percent or below and this encouraged countries now with no dead it can add more to. give the wrong message because what they should have realized is that this these debts now are so euro debt no longer drachmas are clear that it can't devalued them away you're stuck with this and maybe in retrospect it might have been wise for countries of the high debt not to lock themselves into that fixed at her to have a devaluation in inflation before but nobody wanted to do that and if they. murdered risks not being able to make that deadline of nine hundred ninety nine of getting all those countries into the euro zone and and because. you know a moment the political moment may have been may not have come up ever again yet

because when you think about it on the other hand europe steps to g.d.p. rates were always lower than let's say compared to the united states or japan maybe were let to the crisis is not in the depths but it's to fact that so many. different completely different. greatly divergent economies were put together. you know it you stitched up a frankenstein in a way and then injected blood into its main grease entered the monetary union its g.d.p. per capita it was about a third that of germany. but then greece started to increase the level of spending and it increased it a great deal now if they had stayed out of the eurozone if they were in this position now with the drachma of course they could devalue that devaluation would cut their debt down but in the process right now if people thought that was going

to happen interest rates would soar and they wouldn't be able to do it but like you said countries like greece and spain portugal they kept losing competitiveness one stage joined the european union and that's because they had nothing to devalue to in order to make up for their losses and that of course is also because of the euro i mean they really had their hands tied with the euro they couldn't really stimulate their economies domestic economies i made a plan for the year i think it was the first plan for the year one thousand nine hundred sixty nine i did it wasn't called the year i called it in one thousand nine hundred ninety ropa the rope was the currency and in that place. it was different from the door plan in one nine hundred eighty nine twenty years later my plan kept the european currencies in until gradually they moved into and replace the current he's not on it once and countries would do it one by one they do. when they when

the situation was right the first step would be to move when the time is appropriate to occur keyboard system but they should keep their currencies if you can't do a currency board you can't do monetary union well that's got a lesson for countries that haven't yet joined the euro area. because it's a good countries czech republic and poland and those countries that they should be really be for going into that you need to see if they can get into it and test it out with kurt sr just it would be what it means automatic gives you the monetary policy of being in the union but it doesn't give up the currency that you still have now in that case so you could you could anyway that is the way the european system worked and so they locked into that and they've got got all those difficulties now how to get out of it is through they've got to get groups going in could to get korea back and i think it's going to depend on

a much more aggressive policy on the part of the european central bank as well is more distribution because it's good to be it's good to be redistribution in some ways to help with the deficit a pooling pooling of debts and. that will involve some implicit turns for years from the northern countries to the southern countries but it will save the union i think i read one of your interviews that actually argued that if greece were to leave here as though it would be better for you are right now but ok a part of the fact that it would be disastrous for greece and it's on the brink of collapse one that trigger it only no effect after greece and be probably spain italy ireland and then you know what's the whole point of the european union that there's a risk of you could say contagion that that if if the one country left there might be the expectation the other countries might might leave also

should grace leave what do you think but the fact is if one country leaves. that country is going to then have to do just thing on its own it's going to be much more it's more difficult then to do it under the auspices of the eurozone or the e.u. so this will be a big. penalty if a country leaves suppose in a come to it it could happen if a country the population gets fed up with the eurozone they don't trust it they don't like it they don't want it on and so they get the government to leave then they're on their own who's going to be going to balance the budget they have to get have to default and then their banks might collapse and and whoever else has. holds their debt is going to be penalized by that this is going to be a terrible penalty much more austerity in a very unfortunate way but it will be maybe the burden will be pushed more on the people who do hold assets richer people so the people who have these

assets so you don't think greece should leave the euro zone i was in greece in july the end of july and i had a large person conference and with a lot of people come three hundred people around it and they were asking me to say he said well citibank this said there's a ninety percent can't see greece will have to leave the eurozone. and i'm a day what do you think of that and i said i think it's a ridiculous percentage maybe there's some chance but if not more than twenty five percent anyway but later on i think citibank change their in the they really do reduce their risk of it there was some bad things looked as if they're going to happen and they didn't happen but the but for greece to leave the want to want to leave would be ridiculous and i don't think any anyone in greece really wants to leave now that they've been talked out of that that's not

a good maybe sixty five percent at least modest say anyway so i think that's they're going to happen that's been if you go if greece has to the fall and. i think people who know cruises are already in fact defaulted some states have already taken partial partial before and they're going to solve the problem with the huge debt level they have now. so they're going to do for a much better the fourth under the auspices of the of the troika otherwise i want to talk about to you about a broader picture that people outside of european union get and everyone knows that q so and european union they go hand in hand i mean that's the whole idea of the strong bloc strong union from what it seems from the outside because of the sort of the economic crises there have been so many social problems that arose when

example nationalisms on the rise in almost every single country of europe right now and then people say that with the hero. it has brought euro for europe farther apart northern part and southern part and you know it only made rich countries richer like germany and you know the countries that are on the periphery state they made me it made them even more incapable do you think taken into consideration everything we've said that you were a peon union has a future. oh i think it does because the i think first of all that the euro i agree with you the euro is a key part of the of the european union now and if the euro was on really broke up it would might be the end of that but i don't believe that's going to happen because they've got to move more rapidly and they've got to that's the best way to to to do it to do rather than. me not to bring the crisis drag out you got to get

out of the recession he won't he won't get the countries solvent with respect to their deficits until you do all you have to do is get back to budget balance for these countries and you have to do that through raising revenues but not through raising taxes but by getting the economies back to full employment get your back to full employment and all those numbers are going to change about the euro zone i think mentioned solve it but in the process you want to you want to make use of the pressure here to make the political changes that are not going to prevent it from happening again because if you just get back to form on you're going to go back you're going to have those problems again in the next recession and you're sure there's going to be a recession and it will come in the future so you have to solve the problem of the centralization factor you've got to do that you've just got to do it quickly

because even the quicker you do it the cooker the central bank and other forces can get to put the economy back to or to be you need tax cuts need tax cuts not increases i think berlusconi is right. robert mendell thank you very much for your time and your insight on this interview thank. you. i'm here with some investors filming them. i'm here to show you apply

a force to buy property in this area and you know george bush. no exception. distinct solution to carry. out your so beautiful little us a lot. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. giant corporations are all. what mystery is hidden deep the nice. says

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